THE DIFFERENCE BETWEEN THEORY AND PRACTICE IN THE TRANSITION TO RESPONSIBILITY CENTER MANAGEMENT IN PUBLIC AAU INSTITUTIONS

Abstract

The landscape of higher education continues to change. After nearly 50 years of continued growth in the public sector, stagnation is expected with an enrollment cliff by 2030 (Bransberger, 2017). At the same time pressures for accountability, coupled with decreases in state funding, have pushed public higher education institutions to become more market-driven and entrepreneurial in nature. Burton Clark (1983) noted the change process itself remains elusive and is often overlooked in research. Also, most RCM studies have focused on the effect of implementation using externally facing resource dependence theory as a guiding framework. This study examines the experiences of financial leaders of Association of American Universities (AAU) public universities who have transitioned to Responsibility Centered Management (RCM) to gain insight into organization change and theories and practice in organizations. An exploratory mixed method approach was utilized combing both survey and multiple case study analysis using constant comparative method. Argyris and Schön’s theories-in-use framework (1996) and Schein’s cultural theory (1996, 2010) guide analysis, and interpretation of the findings. Three main findings were identified with positive outcomes in implementation. First, decision to transition is not limited to revenue generation, but a focus on strategic planning, accountability, and understanding (e.g., transparency). Second, successful RCM implementation is associated with Model II learning incorporating collaboration, reflective learning, and ability to change. Third, the culture of the institution must play a critical role along with strong leadership, and collective action. The presentation of findings leads to recommendations for future research and implications for practice.